Answer all questions #1 to #3
CONTINUED ON BACK 3. Given the following demand schedule from question 1: Price Quantity Demanded $160 40000 $200 35000 $240 30000 $280 25000 $320 20000 a. Solve for the price elasticity of demand as the price changes from $160 to $200. b. State whether the elasticity value you obtained signifies the product in this range to be elastic, inelastic, or unit elastic. c. Solve for the price elasticity of demand as the price changes from $280 to $320. d. State whether the elasticity value you obtained signifies the product in this range to be elastic, inelastic, or unit elastic. e. Solve for total revenue at each of the five price levels from the demand schedule.2. Supply and Demand Curve Shifts 31. Suppose that both the supply and demand curve for a given product decrease simultaneously. As a result of both changes occurring at the same time, explain in words what impact these two changes together will have on the equilibrium price and the equilibrium quantity for the given product. 13. Suppose that the supply curve for a given product decreases while at the same time the demand curve for that same product increases. As a result of both changes occurring at the same time, explain in words what impact these two changes together will have on the equilibrium price and the equilibrium quantity for the given product. Complete the following questions. 1. The following table summarizes the market for new textbooks at the NCC Bookstore. Price _( Quantity Supplied _( Quantity Demanded $160 0 40000 $200 15000 35000 $240 30000 30000 $280 45000 25000 $3 20 60000 20000 a. Graph the above supply and demand schedules on the same graph. is. What are the equilibrium price and quantity? Show the point of equilibrium on your graph. (2. At all prices other than equilibrium, state whether there is a shortage or surplus of textbooks and how large this shortage or surplus is. a. Suppose the government announces that the price for the textbooks will be $200. Would this price represent them setting a price ceiling or a price oor on the books? Explain. e. At this price of $200, how many textbooks will now be sold?I f. Suppose there is a technological advancement in the production of economics textbooks. Show how this would impact your graph for the economics textbooks at the NCC Bookstore. In other words, show if the supply curve or demand curve shifts and show the direction in which the curve will shi. Label what you did as T and elm what has occurred on the graph. g. Suppose the bookstore has an increase in the number of used economics textbooks to sell. As you know the used textbooks (a substitute good) are less expensive than the new textbooks. Show how this increase in the number of used economics textbooks would impact your graph for the new economics textbooks at the NCC Bookstore. In other words, show if the supply curve or demand curve shifts and show the direction in which the curve will shift. Label what you did as U and cam what has occurred on the graph
